Which of the following statements regarding cost-oriented approaches is most accurate?
A)These methods focus on the demand side of the pricing problem.
B)These methods account for production,marketing,and overhead expenses.
C)Target return on investment is an example of a cost-oriented method.
D)Experience curve pricing is simple to use because costs predictably decrease by 25 percent with each doubling of production.
E)Cost-oriented approaches are a subcategory of competition-oriented methods.

Question

Quizplus · Accepted Answer

With cost-oriented approaches,a price setter stresses the cost side of the pricing problem,not the demand side.Price is set by looking at production and marketing costs and then adding enough to cover direct expenses,overhead,and profit.

Which of the Following Statements Regarding Cost-Oriented Approaches Is Most